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The effects of fiscal policy on the Spanish economy: Keynesian or non-Keynesian behavior?

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  • Ricci-Risquete, Alejandro
  • Ramajo, Julián

Abstract

Can fiscal policy help to the ending of the economic crisis affecting Spain? Given this starting point, we study the effects on the Spanish economy of a shock to total public receipts or a shock to total public expenditure. With that objective in mind, we specify and estimate a vector error correction model with exogenous variables, using quarterly monetary and fiscal data for the Spanish economy from 1978 to 2009.

Suggested Citation

  • Ricci-Risquete, Alejandro & Ramajo, Julián, 2015. "The effects of fiscal policy on the Spanish economy: Keynesian or non-Keynesian behavior?," Journal of Policy Modeling, Elsevier, vol. 37(6), pages 1019-1048.
    • Handle: RePEc:eee:jpolmo:v:37:y:2015:i:6:p:1019-1048
    DOI: 10.1016/j.jpolmod.2015.08.006
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    Cited by:

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    3. Chandika Gunasinghe & E. A. Selvanathan & Athula Naranpanawa & John Forster, 2021. "Rising Income Inequality in OECD Countries: Does Fiscal Policy Sacrifice Economic Growth in Achieving Equity?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1840-1876, December.

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    More about this item

    Keywords

    Fiscal policy; Government spending; Public receipts; Vector error correction model; Spain;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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